RBI governor says India growth story is still intact
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Reserve Bank of India (RBI) governor D Subbarao today, 9 September 2008,
said the current high level of domestic inflation reflects a combination of
supply-side pressures as well as demand-side factors. RBI will be monitoring
the situation closely and continuously, be mindful of the implications of
the monetary stance on the growth prospects, and take action as appropriate,
he said at his first press conference after taking charge as the RBI
governor last week.

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India's remarkable economic expansion from an average of 5% in the '90s to
close to 9% in the recent period has been led by rise in private
consumption, rise in private investment and surge in exports, Subbarao said
adding that the structural India growth story is still intact and credible.

To sustain and accelerate this growth, financial sector reform, aimed at
improved efficiency and financial stability, will remain important, he said.

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